When unpaid debts accumulate and creditors start calling, most people prefer to wipe the slate clean, and start over again. However, most people do not know the options available to stop debt collection in Greenbelt. An experienced collection lawyer has an adequate understanding of all the debt collection laws in the State Greenbelt. The lawyer can help their clients understand their legal rights, and help them work towards their financial freedom. Depending on the borrower’s situation, the attorney may advise them to stop future debt collections by filing for bankruptcy. Generally, there are two major types of bankruptcy: Chapter 7 bankruptcy and chapter 13 bankruptcy. Chapter 7 bankruptcy allows a person to get rid of all their unsecured debts. Chapter 13 bankruptcy stops debt collectors from calling by creating a three to five year repayment plan. Here are some essential details to know about debt collection in Greenbelt.
Types Debts and Collectors Covered by the Greenbelt Debt Collection Act
Unlike the Fair Debt Collection Practices Act (FDCPA), which applies to people in the business of debt collection, the Greenbelt Debt Collection Act covers individuals, estates and any form of business or legal entity. This means that any individual or entity seeking to collect payments, such as creditors, collection agencies or collection lawyers must abide to the Greenbelt Consumer Debt Collection Act (MCDCA). Some examples of debts covered by the MCDCA include mortgages, car payments, charge card accounts, credit card bills, consumer leases among other types of debts.
Three Prohibited Activities Under the MCDCA
The Greenbelt Act prohibits the following activities during a debt collection process:
* Threats: Debt collectors should not intimidate a debtor by threatening force or violence, use of abusive language, threats of criminal prosecutions among other forms of threats.
* Third party communications: Debt collectors should not threaten to undermine the debtor’s reputation by communicating with a third party, such as an employer.
* Deception: A creditor should not trick anyone into paying a debt.
These are just some of the important details to know about the laws of debt collection in Greenbelt. For additional details about debt collection, and the importance of hiring a collection lawyer, please go to website.
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